NCUA Issues Final Rule Regarding Agency Reorganization

The National Credit Union Administration (NCUA) recently issued a final rule to implement various features of the administration’s reorganization plan, which was announced in July of 2017.  The plan attempts to streamline and consolidate NCUA’s functions and offices in order to reduce the NCUA’s budget and increase its efficiency.  This final rule will not have a significant economic impact on small credit unions (i.e., primarily those possessing under $100 million in assets), as it only addresses NCUA’s internal organization.

The portions of the plan reflected in the final rule, which focuses on amendments to NCUA regulations related to the organization of the NCUA’s Central Office, will:

• Eliminate the Office of Small Credit Union Initiatives.
• Rename the Office of Consumer Financial Protection and Access to the “Office of Consumer Financial Protection.”
• Create a new office named the “Office of Credit Union Resources and Expansion,” which will absorb:
  • Most of the current functions of the Office of Small Credit Union Initiatives;
  • The federal credit union chartering and field of membership functions of the Office of Consumer Financial Protection; and
  • The minority depository institution preservation program of the Office of Minority and Women Inclusion.
• Correct the definition of “Regional Director” in the NCUA’s voluntary merger regulation to explain that, for natural person credit unions with assets of $10 billion or more and for corporate credit unions, the term “Regional Director” also applies to the director of the Office of National Examinations and Supervision.

Other aspects of the Board’s reorganization plan do not require regulatory changes at this time.

The rule became effective on January 6, 2018.  The NCUA Board will issue another rule in the coming year to reflect the reduction in the number of NCUA Regional Offices beginning in 2019, since the two NCUA Regional Offices to be eliminated under the reorganization plan will not be closed under December 31, 2018.

The Final Rule is accessible here.